Can the Development Rights for Cicis be exercised by an Affiliate, and if so, what approval is needed?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
the Development Rights may only be exercised by the execution by us and you or your Affiliate that we approve of our then-current form of Franchise Agreement which, except as expressly provided in this Agreement, may be materially different than the form of Franchise Agreement we are using to grant Franchises on the Effective Date;
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Development Rights can be exercised by an affiliate, but only with Cicis's approval. Specifically, the franchisee or an affiliate approved by Cicis must sign and deliver the Franchise Agreement. This condition applies both when the agreement is initially signed and each time a new site is secured.
This means that if a franchisee wishes to have a separate business entity (an affiliate) develop and operate a Cicis restaurant under the Development Agreement, they must first obtain Cicis's explicit approval of that affiliate. This approval is not a mere formality; Cicis retains the right to reject any affiliate.
This requirement protects Cicis by ensuring that anyone developing restaurants under its brand meets its standards. For a prospective franchisee, this means they cannot automatically assume they can transfer development responsibilities to another entity they control; Cicis has the final say. The franchisee should discuss the criteria Cicis uses to approve affiliates and the process for obtaining this approval.